Scarcity

One of the most important concepts in economics is scarcity . Scarcity can be explained as want are always exceeding limited resources to satisf them . Scarcity is a universal problem faced by both poor and rich nations in order to fulfill their needs . if these is no scarcity , there will be no economics . The needs or wants are unlimited but the world has only a limited amount of resources of factors of production . Factors of production are the basic resources used in the production process in order to produce economic goods and services . Economics hjave classified the factors of production into four group namely :

1. Labour - The services controibuted by people in the produ tion process that invole both mental and physical effort . Exmaples are lecturers , construction workers and others . For more details please see chapter 5 .
2. Capital - Huiman made resources which are used in the production process to produce other goods and services . Examples are machinery , raw materials , building , tools and others .
3. land - All natural resources such as land , air , water , forest , and others .
4. Entrepreneur - Human ability and capability to combine land , labour and capital to develop production of goods and services .